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Full Text of HB1645  97th General Assembly

HB1645enr 97TH GENERAL ASSEMBLY

  
  
  

 


 
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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Live
5Adult Entertainment Facility Surcharge Act.
 
6    Section 3. Findings. It is the intent of the General
7Assembly to ameliorate the negative secondary effects
8associated with the consumption of alcoholic beverages on the
9premises of sexually oriented businesses, or the proximity of
10sexually oriented businesses to facilities serving alcohol, so
11as to promote the health, safety, and welfare of the citizens
12of Illinois.
13    This Act is not intended to directly or indirectly impose
14limitations or restrictions on live nude dancing, nor is it the
15intent of this Act to restrict or deny access by adults to live
16nude dancing performances that may be protected by the First
17Amendment of the United States Constitution or by the Illinois
18Constitution.
 
19    Section 5. Definitions. As used in this Act:
20    "Admission" means entry by a person into a live adult
21entertainment facility.
22    "Department" means the Department of Revenue.

 

 

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1    "Live adult entertainment facility" means a striptease
2club or other business that serves or permits the consumption
3of alcohol on its premises, and, during at least 30 consecutive
4or nonconsecutive days in a calendar year, offers or provides
5activities by employees, agents, or contractors of the business
6that involve nude or partially denuded individuals that, when
7considered as a whole, appeal primarily to an interest in
8nudity or sex.
9    "Nude or partially denuded individual" means an individual
10who is:
11        (1) entirely unclothed; or
12        (2) clothed in a manner that leaves uncovered or
13    visible through less than fully opaque clothing any portion
14    of the breasts below the top of the areola of the breasts,
15    if the person is female, or any portion of the genitals or
16    buttocks.
17    "Operator" means any person who owns or operates a live
18adult entertainment facility in this State.
 
19    Section 10. Surcharge imposed; returns.
20    (a) An annual surcharge is imposed upon each operator who
21operates a live adult entertainment facility in this State. By
22January 20, 2014, and by January 20 of each year thereafter,
23each operator shall elect to pay the surcharge according to
24either item (1) or item (2) of this subsection.
25        (1) An operator who elects to be subject to this item

 

 

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1    (1) shall pay to the Department a surcharge imposed upon
2    admissions to a live adult entertainment facility operated
3    by the operator in this State in an amount equal to $3 per
4    person admitted to that live adult entertainment facility.
5    This item (1) does not require a live entertainment
6    facility to impose a fee on a customer of the facility. An
7    operator has the discretion to determine the manner in
8    which the facility derives the moneys required to pay the
9    surcharge imposed under this Section. In the event that an
10    operator has not filed the applicable returns under the
11    Retailers' Occupation Tax Act for a full calendar year
12    prior to any January 20, then such operator shall pay the
13    surcharge under this Act pursuant to this item (1) for
14    moneys owed to the Department subject to this Act for the
15    previous calendar year.
16        (2) An operator may, in the alternative, pay to the
17    Department the surcharge as follows:
18            (A) If the gross receipts received by the live
19        adult entertainment facility during the preceding
20        calendar year, upon the basis of which a tax is imposed
21        under Section 2 of the Retailers' Occupation Tax Act,
22        are equal or greater than $2,000,000 during the
23        preceding calendar year, and if the operator elects to
24        be subject to this item (2), then the operator shall
25        pay the Department a surcharge of $25,000.
26            (B) If the gross receipts received by the live

 

 

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1        adult entertainment facility during the preceding
2        calendar year, upon the basis of which a tax is imposed
3        under Section 2 of the Retailers' Occupation Tax Act,
4        are equal to or greater than $500,000 but less than
5        $2,000,000 during the preceding calendar year, and if
6        the operator elects to be subject to this item (2),
7        then the operator shall pay to the Department a
8        surcharge of $15,000.
9            (C) If the gross receipts received by the live
10        adult entertainment facility during the preceding
11        calendar year, upon the basis of which a tax is imposed
12        under Section 2 of the Retailers' Occupation Tax Act,
13        are less than $500,000 during the preceding calendar
14        year, and if the operator elects to be subject to this
15        item (2), then the operator shall pay the Department a
16        surcharge of $5,000.
17    (b) For each live adult entertainment facility paying the
18surcharge as set forth in item (1) of subsection (a) of this
19Section, the operator must file a return electronically as
20provided by the Department and remit payment to the Department
21on an annual basis no later than January 20 covering the
22previous calendar year. Each return made to the Department must
23state the following:
24        (1) the name of the operator;
25        (2) the address of the live adult entertainment
26    facility and the address of the principal place of business

 

 

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1    (if that is a different address) of the operator;
2        (3) the total number of admissions to the facility in
3    the preceding calendar year; and
4        (4) the total amount of surcharge collected in the
5    preceding calendar year.
6    Notwithstanding any other provision of this subsection
7concerning the time within which an operator may file his or
8her return, if an operator ceases to operate a live adult
9entertainment facility, then he or she must file a final return
10under this Act with the Department not more than one calendar
11month after discontinuing that business.
12    (c) For each live adult entertainment facility paying the
13surcharge as set forth in item (2) of subsection (a) of this
14Section, the operator must file a return electronically as
15provided by the Department and remit payment to the Department
16on an annual basis no later than January 20 covering the
17previous calendar year. Each return made to the Department must
18state the following:
19        (1) the name of the operator;
20        (2) the address of the live adult entertainment
21    facility and the address of the principal place of business
22    (if that is a different address) of the operator;
23        (3) the gross receipts received by the live adult
24    entertainment facility during the preceding calendar year,
25    upon the basis of which tax is imposed under Section 2 of
26    the Retailers' Occupation Tax Act; and

 

 

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1        (4) the applicable surcharge from Section 10(a)(2) of
2    this Act to be paid by the operator.
3    Notwithstanding any other provision of this subsection
4concerning the time within which an operator may file his or
5her return, if an operator ceases to operate a live adult
6entertainment facility, then he or she must file a final return
7under this Act with the Department not more than one calendar
8month after discontinuing that business.
9    (d) Beginning January 1, 2014, the Department shall pay all
10proceeds collected from the surcharge imposed under this Act
11into the Sexual Assault Services and Prevention Fund, less 2%
12of those proceeds, which shall be paid into the Tax Compliance
13and Administration Fund in the State treasury from which it
14shall be appropriated to the Department to cover the costs of
15the Department in administering and enforcing the provisions of
16this Act.
 
17    Section 15. The Sexual Assault Services and Prevention
18Fund.
19    (a) The Sexual Assault Services and Prevention Fund is
20created as a special fund in the State treasury. From
21appropriations from the Fund, the Department of Human Services
22shall make grants to sexual assault organizations with whom the
23Department has contracts for the purpose of providing
24community-based assistance to victims of sexual assault and for
25activities concerning the prevention of sexual assault. Moneys

 

 

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1received for the purposes of this Act, including, without
2limitation, surcharge proceeds and gifts, grants, and awards
3from any public or private entity, must be deposited into the
4Fund. Any interest earnings that are attributable to moneys in
5the Fund must be deposited into the Fund.
6    (b) Notwithstanding any deposits authorized under
7subsection (d) of Section 10 of this Act, the Fund is not
8subject to sweeps, charge-backs, or any other fiscal or
9budgetary maneuver that would in any way transfer any moneys
10from the Fund into any other fund of the State.
 
11    Section 20. Books and records. Every operator electing to
12pay the surcharge pursuant to item (1) of subsection (a) of
13Section 10 of this Act shall record the admissions of customers
14subject to the surcharge under this Act.
 
15    Section 25. Application of Retailers' Occupation Tax
16provisions; Uniform Penalty and Interest Act provisions. All
17the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g,
185i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, and 13 of the Retailers'
19Occupation Tax Act that are not inconsistent with this Act
20apply, as far as practicable, to the surcharge imposed by this
21Act to the same extent as if those provisions were included in
22this Act. References in the incorporated Sections of the
23Retailers' Occupation Tax Act to retailers, to sellers, or to
24persons engaged in the business of selling tangible personal

 

 

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1property mean operators. All provisions of the Uniform Penalty
2and Interest Act which are not inconsistent with this Act shall
3apply.
 
4    Section 30. Rules. The Department may adopt and enforce any
5reasonable rule to administer and enforce the surcharge imposed
6by this Act.
 
7    Section 40. Review under the Administrative Review Law. The
8circuit court of any county in which a hearing is held has the
9power to review all final administrative decisions of the
10Department in administering the surcharge imposed under this
11Act. The term "administrative decision" is defined as in
12Section 3-101 of the Code of Civil Procedure.
 
13    Section 45. Penalty. Any operator who fails to make a
14return or who makes a fraudulent return is guilty of a Class 4
15felony.
 
16    Section 90. The State Finance Act is amended by adding
17Section 5.811 as follows:
 
18    (30 ILCS 105/5.811 new)
19    Sec. 5.811. The Sexual Assault Services and Prevention
20Fund.
 

 

 

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1    Section 97. Severability. The provisions of this Act are
2severable under Section 1.31 of the Statute on Statutes.
 
3    Section 99. Effective date. This Act takes effect January
41, 2013.